Dixon, partners with Bharti to apply for govt’s PLI scheme

The company said that after the execution of mutually acceptable agreements by the two companies, 74% of the joint venture (JV) company will be owned by Dixon while 26% of the new firm will be owned by Bharti Enterprises.

PLI Scheme (Pixabay)

Noida-based electronic appliances company Dixon today announced that it has entered into a Memorandum of understanding with Bharti Enterprises to form a joint venture in a bid to avail benefits provided by the government's Production Linked Incentive (PLI) plan.

The company said that after the execution of mutually acceptable agreements by the two companies, 74% of the joint venture (JV) company will be owned by Dixon while 26% of the new firm will be owned by Bharti Enterprises.

The company also said that Dixon Electro Appliances Private Limited or any other company identified by the parties will be the JV company, which will undertake the manufacturing of telecom and networking products like modems, routers, set-top boxes, IoT devices, etc for the telecom sector/industry including Airtel.

“Telecommunications sector has played a pivotal role in facilitating growth of the economy and is a key enabler of digital connectivity and Digital India. With Dixon's excellent track record in the manufacturing industry & Bharti's deep expertise in Telecom, this venture will be well-positioned to be a key player in its space,” Deven Khanna, Group Director, Bharti Enterprises said on the occasion.

Interestingly, the announcement comes shortly after the Union Cabinet chaired by PM Narendra Modi approved the Production Linked Incentive (PLI) scheme for manufacturing of white goods, which includes air-conditioners and LEDs and high-frequency solar PV modules in the country.

In addition to this, the government said that in over 5 years, the PLI scheme will lead to an incremental investment of ₹7,920 crore, incremental production of ₹1,68,000 crore, exports of ₹64,400 crore, earn direct and indirect revenues of ₹49,300 crore. The government also said that the scheme will create additional 4 lakh employment opportunities in the country.